The following transactions were selected from among those completed by Cadence R

Question

The following transactions were selected from among those completed by Cadence Retailers in November and December:

Nov. 20 Sold 20 items of merchandise to Customer B at an invoice price of $5,800 (total); terms 4/10, n/30.

Nov 25 Sold two items of merchandise to Customer C, who charged the $600 sales price on her Visa credit card. Visa charges Cadence Retailers a 2 percent credit card fee.

Nov 28 Sold 10 identical items of merchandise to Customer D at an invoice price of $9,900 (total); terms 4/10, n/30.

Nov 29 Customer D returned one of the items purchased on the 28th; the item was defective, and credit was given to the customer.

Dec. 6 Customer D paid the account balance in full.

Dec 20 Customer B paid in full for the invoice of November 20.

Required: Assume that Sales Returns and Allowances, Sales Discounts, and Credit Card Discounts are treated as contra-revenues; compute net sales for the two months ended December 31. (Do not round your intermediate calculations. Round your answer to the nearest whole dollar amount.)

Explanation / Answer

Total Sales (5,800 +$ 600+ $ 9,900)          16,300 Less:Sales returns 9900/10                990 Less: Credit Card Fees 600*2%                  12 Less:Cash Discounts 9900-990 = 8910*4%                356 Equals Net Sales          14,942

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